S&P: Washington Post view negative

Standard & Poor's said it revised the outlook on Washington Post Co. to negative from stable and affirmed its A long-term and A-1 short-term corporate credit ratings.

The outlook revision follows the notice of proposed rulemaking published by the U.S. Department of Education, which proposed measures under which postsecondary educational programs would remain eligible for federal loans to students under Title IV funding, according to the agency.

Institutions in Washington Post's Kaplan Higher Education division had repayment rates that fell below the threshold to retain Title IV funding eligibility, the agency said.

"While we acknowledge that the rules in this matter are not finalized, the negative outlook reflects the possible intermediate-term impact on some level of enrollment and cash flow in the company's education division, which generated 50% of total EBITDA in the 12 months ended June 2010," S&P analyst Hal Diamond said in a statement.

"Still, the rating reflects the company's ample levels of excess liquidity, minimal financial risk, and strong and diverse business positions."

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